Concentrated milk and cream market in Indonesia

Earlier Report Observations

From 2018 to 2021, the market volume for concentrated milk and cream in Indonesia expanded steadily from 26 746 metric tons to 39 206 metric tons. This growth was supported by rising imports, which reached 21 509 metric tons in 2021, as the domestic dairy industry relied on foreign raw materials to meet demand. In 2018, the BPOM regulatory agency introduced a new labeling and advertising circular for sweetened condensed milk, affecting market practices for this key product category.

The market's upward trajectory paused in 2022, with volume dipping to 36 637 metric tons. This was partly due to outbreaks of Foot and Mouth Disease (FMD) and Lumpy Skin Disease in dairy cattle, which constrained domestic milk supply. Concurrently, major investments by companies such as PT Frisian Flag Indonesia and PT Nestle Indonesia expanded processing capacity across the dairy sector, setting the stage for future production growth.

By 2023, market volume recovered to 38 090 metric tons. Consumer preferences continued shifting toward UHT and pasteurized liquid milk, a trend noted since 2018, yet concentrated milk and cream maintained a significant market presence. The implementation of Industry 4.0 initiatives, including digitalized milk collection points, helped enhance quality control and supply chain efficiency during this period.

Production concentrated milk and cream in Indonesia

In kind, 2018-2021, t

Top producers of concentrated milk and cream, 2018-2021

World map of production of concentrated milk and cream, 2018-2021

In 2021, Indonesia produced 21 842 tonnes of concentrated milk and cream, showing broad stability compared to the previous year. The largest decline occurred in 2019, at 0.1%, while the largest increase was recorded in 2020, also at 0.1%.

Annual dynamics of production in Indonesia in kind, 2018-2021, t

In value, 2018-2021, K $ US

After two years of decline, concentrated milk and cream production in Indonesia increased in 2021. Output was valued at 24 309 thousand US dollars, marking a gradual rise of 7.1% from the previous year. Over the 2018-2021 period, production decreased by 38.3%, with a compound annual growth rate (CAGR) of 14.9%. The minimum value was recorded in 2020 at 22 692 thousand US dollars, which also saw the largest decline of 24.2%.

Annual dynamics of production in Indonesia in value, 2018-2021, K $ US

Exports concentrated milk and cream from Indonesia

Exports in kind, t

Indonesia's volume of concentrated milk and cream exports declined for the second consecutive year in 2021, reaching 4 145 tonnes, a 25.3% year-on-year decrease. Over the 2018-2021 period, exports fell by 14%, with a CAGR of 4.9%. The maximum volume was recorded in 2019 at 5 621 tonnes, which also saw the largest increase of 16.7%.

Annual dynamics of product's exports from Indonesia in kind, 2018-2021, t

From 2018 to 2021, the Philippines and Vietnam were the two leading markets for Indonesia's concentrated milk and cream exports, together accounting for 84.4% of total exports in kind. The remaining volume was distributed across a wide range of other countries.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Indonesia in kind, 2018-2021

Exports in value, K $ US

Indonesia's concentrated milk and cream export value declined for the third consecutive year in 2021, totalling 4 613 thousand US dollars, which is 19.8% lower than in 2020. Over the 2018-2021 period, exports decreased by 46.8%, with a CAGR of 19.0%.

Annual dynamics of product's exports from Indonesia in value, 2018-2021, K $ US

Throughout 2018-2021, the Philippines, Vietnam, and Pakistan formed the core group of markets for Indonesia's concentrated milk and cream exports in value terms. The Philippines accounted for 47.8% of exports, Vietnam for 20.2%, and Pakistan for 14.4%, together representing 82.4% of total export flows.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Indonesia in value, 2018-2021

Imports concentrated milk and cream to Indonesia

Imports in kind, t

Concentrated milk and cream imports into Indonesia increased for the third consecutive year in 2021, totalling 21 509 tonnes, reflecting a moderate year-on-year rise of 6.7%. Over the 2018-2021 period, imports grew by 122.3%, with a CAGR of 30.5%.

Annual dynamics of product's imports to Indonesia in kind, 2018-2021, t

From 2018 to 2021, Malaysia was the main supplier of concentrated milk and cream to Indonesia, accounting for 76.5% of total imports in kind. Other partners held relatively modest shares during this period.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Indonesia in kind, 2018-2021

Imports in value, K $ US

Indonesia's concentrated milk and cream import value increased for the third consecutive year in 2021, reaching 25 759 thousand US dollars, up by 16.0% from the prior year. Between 2018 and 2021, imports rose by 69.4%, equating to an annualized rate of 19.2%.

Annual dynamics of product's imports to Indonesia in value, 2018-2021, K $ US

In 2018-2021, three principal markets—Malaysia, the United Kingdom, and France—together accounted for 93.5% of total imports in value terms of concentrated milk and cream to Indonesia.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Indonesia in value, 2018-2021